I think the best thing to do is to keep cash in hand!
The present situation is not great and COVID19 cases have entered Colombo.
The government played a part by locking us down for months when cases were easily traceable.
Now the government is downplaying when cases are untraceable and before you know it, the whole country is affected.
Not being pessimistic. I'm a strong bull but I'm also a realist! I don't want people to lose their money on blind shot and optimism shared by other members! Optimism is good! But be realist!
We have to be realistic. And not many want to accept it since we all have long positions.
Put that aside, the country is in a grave dangerous situation. The best thing to do is have cash in hand and wait.
You might say foreigners are buying and we are modayas. We modayas earned our hard earned money. Foreigners are using other investors money and buying in peanuts sizes. For them 100 - 200 m is just half a million dollars and they will continue to downsize it buy averaging it. And there fund size is in billions of dollars and they can sell it at loss. However, what is incoming is just peanuts from foreign investors. Most of the investors cashed out!
We ordinary people cant afford to do it. Once you buy! You have to pray to all the gods out there!
Be smart. This is not Wall Street.
Even Rusi Captain can take a hit of nearly half a billion from Seylan Bank investment, i'm sure we should have the stomach to take a small loss and stay on the side lines until the COVID19 cases come to a controlling enviroment.
You see that's the thing with Investing in the stock market. Invest disposable income or dont invest in the stock market at all. you cant expect to make a quick sizable gain by just putting a couple of million rupees and trade in short time frames. You gotta be in it for long term and if u are in it for long term, you gotta buy when market is continuously going down and not when it is going up. For those who bought it can continuously average it or forget about the stock for some time. If you have invested in a good company at a fair price, you will never lose in the long run.
If an investor thinks that he can make profits by selling at a loss when market goes down and buying it back when markets picking up is a sure mantra to keep on losing!!!